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Share-based Payments
 3 Months Ended
Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-based Payments
Share-based Payments
Share-based Compensation Expense
The following table summarizes share-based compensation expense included in our condensed consolidated statements of income:
 
For the Three Months
Ended March 31,
(In millions)
2017
 
2016
Research and development
$
18.7

 
$
21.4

Selling, general and administrative
29.4

 
34.7

Restructuring charges
—

 
(1.8
)
Subtotal
48.1

 
54.3

Capitalized share-based compensation costs
(2.7
)
 
(3.1
)
Share-based compensation expense included in total cost and expenses
45.4

 
51.2

Income tax effect
(12.4
)
 
(15.2
)
Share-based compensation expense included in net income attributable to Biogen Inc.
$
33.0

 
$
36.0


The following table summarizes share-based compensation expense associated with each of our share-based compensation programs:
 
For the Three Months
Ended March 31,
(In millions)
2017
 
2016
Market stock units
$
9.6

 
$
13.4

Time-vested restricted stock units
26.9

 
30.1

Cash settled performance units
3.5

 
0.2

Performance units
4.5

 
6.9

Employee stock purchase plan
3.6

 
3.7

Subtotal
48.1

 
54.3

Capitalized share-based compensation costs
(2.7
)
 
(3.1
)
Share-based compensation expense included in total cost and expenses
$
45.4

 
$
51.2


We estimate the fair value of our obligations associated with our performance units and cash settled performance units at the end of each reporting period through expected settlement. Cumulative adjustments to these obligations are recorded each quarter to reflect changes in the stock price and estimated outcome of the performance-related conditions. 
Spin-off Related Equity Adjustments
Pursuant to an employee matters agreement entered into in connection with the spin-off of our hemophilia business and the provisions of our existing stock-based compensation arrangements, we made certain adjustments to the number and terms of our outstanding stock options, restricted stock units, cash settled performance units and other share-based awards to preserve the intrinsic value of the awards immediately before and after the spin-off. For purposes of the vesting of these equity awards, continued employment or service with Biogen or with Bioverativ was treated as continued employment for purposes of both Biogen’s and Bioverativ’s equity awards with the outstanding awards continuing to vest over their respective original vesting periods. Outstanding unvested awards for employees transferring to Bioverativ were converted to unvested Bioverativ awards.
Adjustments to the number of our share-based compensation awards were made using an adjustment ratio based upon the weighted-average closing price of our common stock for the 10 calendar days prior to the effective date of the spin-off and the volume weighted-average prices for the 10 calendar days of our common stock following the effective date of the spin-off. For stock options, the exercise prices of the awards were modified to maintain the pre-spin intrinsic value of the awards in relation to the post-spin stock price of Biogen. The difference between the fair value of the awards based upon the adjustment ratio and the opening price on the distribution date was not material.